How to write accounting entries for fixed assets scrapped and transferred to liquidation?
For how to do fixed assets scrapped transferred to clean up the accounting treatment, as follows:
1, fixed assets scrapped, the first into the fixed assets clean up account.
Borrow: fixed asset cleanup
Accumulated depreciation
Provision for impairment of fixed assets
Credit: Fixed Assets (original value)
2. Costs incurred in the process of cleaning up as well as taxes payable
Borrow: Fixed Asset Cleanup
Taxes Payable a VAT Payable (Input Tax)
Credit. Bank deposits/cash on hand
3. Recovery of price, salvage value and realization income from the sale of fixed assets
Borrow: Bank deposits
Raw materials
Credit: Liquidation of fixed assets
Taxes payable: VAT payable (output tax)
4. Handling of insurance compensation, etc.
Borrow: Other Receivables
Credit: Fixed Asset Liquidation
5. Net Loss after Liquidation of Fixed Assets
Borrow: Non-Operating Expenses I Net Loss on Disposal of Fixed Assets
Credit: Liquidation of Fixed Assets
6. Net Gain after Liquidation of Fixed Assets Arising from Scrapping and Liquidating
Borrow: Liquidation of Fixed Assets
Credit: Non-operating income a net gain on disposal of fixed assets
Example: a company will not need to use an old machine for sale, the original book value of the equipment is 50,000 yuan, has been depreciated 40,000 yuan, and finally sold for 10,000 yuan.
First of all, the sale of this business occurs, so that the original value of the enterprise's fixed assets reduced by 50,000 yuan, should be credited to the "fixed assets" account; so that the net value of fixed assets transferred to the clean-up of 10,000 yuan, 40,000 yuan of accumulated depreciation reversal should be recorded in the "fixed assets clean-up" account and "fixed assets" account. "account and" accumulated depreciation "account debit. Prepare accounting entries as follows:
Borrow: fixed assets liquidation 10,000
Accumulated depreciation 40,000
Credit: fixed assets 50,000